Achieving Results With Internet Recruiting 1998 Survey An Internet Intelligence Report by recruitsoft.com/ilogos Research Contacts for recruitsoft.com/ilogos Research: West Coast: Yves Lermusiaux (ylermusiaux@recruitsoft.com) East Coast: Alice Snell (asnell@recruitsoft.com) Contacts for recruitsoft.com: info@recruitsoft.com 888-836-3669 recruitsoft.com M 124 Beale Street, Suite 202 M San Francisco, CA 94105
Copyright 2000 recruitsoft.com Inc. Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. All opinions contained in this document are based on information available at the time of the creation of the document and are subject to change. recruitsoft.com 124 Beale Street, Suite 202 San Francisco, CA 94105
CONTENTS EXECUTIVE SUMMARY 2 1. INTRODUCTION 4 2. WHAT IS THE STATUS OF INTERNET RECRUITING? 6 3. WHAT RESULTS CAN BE ACHIEVED? 8 4. WHAT ARE THE BEST PRACTICES IN INTERNET RECRUITING? 13 5. HOW COST-EFFECTIVE ARE ON-LINE JOB BOARDS? 19 6. CONCLUSIONS 22 ANNEX - INTERNET RECRUITING CHECKLIST 24 Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 1
EXECUTIVE SUMMARY 1. Internet recruiting is quickly becoming an effective means for hiring staff. This ilogos report demonstrates the results that companies at the forefront of Internet recruiting are achieving, along with the best practices required to achieve those results. The study analyzed 45 companies, all at the leading edge of Internet recruiting. 2. Companies are presently achieving three results with Internet recruiting: Lower Recruiting Costs: on-line recruiting requires spending to maintain the employment section of the corporate web site, along with subscriptions to on-line job boards. These costs, however, are more than offset by reduced spending on newspaper ads, job fairs, head hunter fees and mailing costs. Internet recruiting, if done properly, can reduce the cost per recruit by 80% compared to newspaper ads. Faster Recruiting Cycle: firms can cut up to two weeks of the recruiting cycle by moving to the Internet. The Internet results in: faster posting of jobs faster response by candidates faster processing of resumes once received Higher Caliber Recruits: given that Internet users tend to be better educated and more computer literate than non-users, companies feel that they can presently attract better people on the Internet. More importantly, however, is that advertising job opportunities on the web allows firms to attract high-caliber individuals who are presently employed elsewhere. Passive job seekers who have not started an active job search can be tempted to apply when they come across an opportunity listed on a competitor s web site. 3. Firms that are successfully achieving results follow a four-step business model that anchors the recruitment strategy around the corporate web site: Attract Potential Employees to the Web Site: in order to make potential employees aware that information on employment opportunities can be found on the web site, companies use: newspaper advertising other off-line advertising (billboards, radio, sports arenas) on-line job boards Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 2
advertising banners on popular web sites effective keywords on Internet search engines Meet the Information Needs of Potential Employees: once applicants are at the site, firms answer their queries, providing information on: job openings and how to apply the benefits package the corporate culture and work environment Simplify the Application Process: in order to get as many candidates (including highly-qualified candidates) to apply, companies simplify the process by providing the following tools on the web site: search engine for job openings resume builder partnering program (matching applicants with existing employees) email notification (when new jobs in the field become open) Streamline the Processing of Applications: to avoid overloading the human resource department, the firm uses software packages to automate up to six tasks: posting job openings on the web site and on job boards accepting resumes through email or a resume builder sending out an email acknowledgment of receipt searching intelligently for keywords and concepts and undertaking a first screening of candidates preparing resumes that can be easily forwarded to line managers inputting resumes into the Human Resource management system 4. We forecast six trends in Internet recruiting over the next 24 months: the proportion of applications coming in over the Internet will increase firms will increase training for recruiters in how best to use the Internet Internet recruiting will diminish the importance of recruiting through newspapers, job fairs and head hunters firms will push information on job openings out to potential employees the employment section of the web site will become more interactive and participatory and more of the hiring process will become automated Internet recruiting will spread beyond its concentration in North America Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 3
1. INTRODUCTION 1.1 The purpose of this ilogos report is to outline the results that companies at the forefront of Internet recruiting are achieving with their web sites and the best practices required to achieve those results. Given that the Internet is gaining increased acceptance as a standard business tool, we believe that the best practices seen in these companies will become a common procedure in recruiting throughout a range of industries within 24 months. 1.2 The report is based upon interviews with human resource specialists, a review of existing studies and articles on electronic recruitment, an analysis of leading web sites and a survey of human resource and information technology specialists in 45 companies (38% of which are US Fortune 500 companies) at the forefront of Internet recruiting. In the interest of confidentiality, these companies are not identified in the report. 1.3 This study analyzes only companies which use their web sites actively for recruiting purposes that is, they post jobs on-line and use email and the web site to receive applications. 17% of the world s 500 largest corporations actively recruit on the Internet. This study does not examine companies that passively recruit on the Internet that is, they use their site to list jobs, but still require applicants to fax or mail in their resumes. 17% 12% 57% 14% Figure 1 Internet Recruiting Among Fortune Global 500 Companies Active Recruitment on Internet Site Passive Recruitment on Internet Site No Recruitment on Internet Site No Internet Site 1.4 The report examines companies actively recruiting on the Internet from a broad range of industries: computer hardware and software electronics, semi-conductors and network communications telecommunications aerospace parcel delivery financial services Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 4
health care industrial and farm machinery motor vehicles parts energy production and exploration management/information technology consultancy retailing 1.5 The majority of firms at the forefront of Internet recruiting are in the technology sectors. We forecast that Internet recruiting will become a common practice throughout North American industries within 24 months for two reasons: 1) the number of Internet users will increase and better reflect the general population. Hence, firms that are not in the high-tech sectors will feel confident that they can reach their target audiences on the Internet. 2) evidence of the effectiveness of Internet recruiting will grow, raising the comfort level of recruiters in any industry to use this unproven approach. Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 5
2. WHAT IS THE STATUS OF INTERNET RECRUITING? 2.1 Internet recruiting is an emerging field and therefore relatively few corporations have gathered substantive data at this point. Only 17% of the Fortune Global 500 actively recruit on-line, and only one-quarter of them or about 20 of the world s 500 largest corporations - have been doing so for more than two years. This study presents the surveyed views of human resource professionals on the effectiveness of Internet recruiting and actual results achieved by companies. Despite the fact that on-line How long have you been using your Internet site for recruiting purposes? more than 24 months 13-24 months Figure 2 6-12 months less than 6 months recruitment is still in its infancy, an impressive number of job seekers are using the Internet to apply for jobs and secure employment. 25 23 39 13 % 0 10 20 30 40 50 n=44 respondents 2.2 The proportion of on-line applications varies dramatically between and within industries. The attached diagram presents enterprise-specific results that highly successful on-line recruiters are achieving. Computer software firms are top achievers, regularly receiving well over half of all applications on-line. Internet recruiters agree on one point: these numbers will grow. One computer manufacturer reported that its goal is to receive 90% of resumes on-line. Percentage of Total Applications Received On-Line top-achieving firms in selected industries 0 20 40 60 Figure 3 30 35 60 aerospace energy production 70 computer hardware computer software 80 % 2.3 Companies are successfully attracting a high proportion of on-line resumes, even for non-technical positions, because increasing numbers of job seekers are turning to the Internet: Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 6
1) the terms employment and jobs rank as the 26th and 27th most common terms entered into the Yahoo search engine in November 1996, as reported by Eyescream Interactive. When all references to pornography are removed, these two terms become the 13th and 14th most common terms. 2) for over half of the companies surveyed, the employment page is the most visited page on the entire web site after the home page. In other words, potential employees are one of the primary user groups of a firm s web site. Excluding the home page, is the employment page the 1st, 2nd, 3rd, 4th or 5th+ most visited page on your web site? most visited page 1st 2nd 3rd 11 21 52 2.4 Job seekers are turning to the 4th Internet because it simplifies 5th+ 5 the process of searching and % applying for a position. Furthermore, it s fun and appealing and certainly less 0 10 20 30 40 50 stressful than preparing cover Figure 4 letters and cold-calling managers. The Internet also simplifies the recruitment process from the perspective of the employer. Section 3 outlines the results that companies are presently achieving with Internet recruiting. 11 60 n=19 respondents Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 7
3. WHAT RESULTS CAN BE ACHIEVED? 3.1 Among companies that actively recruit on the Internet, two results are regularly achieved: 1) lower recruiting costs 2) faster recruiting cycle The majority of surveyed companies also report a third result: 3) higher caliber recruits LOWER RECRUITMENT COSTS 3.2 Internet recruiting requires spending in two main areas: 1) developing and maintaining the employment section on the web site 2) subscribing to on-line career boards Despite these costs, Internet recruiting can result in a lower cost per hire than recruiting through newspapers, job fairs or head hunters. 3.3 Recruitment Costs Through Different Channels The cost effectiveness of using the Internet is clearly seen in the average cost of recruitment as reported by a major computer manufacturer with close to two years of on-line recruiting experience. Recruiting costs vary between firms and industries depending upon the length of on-line experience, the number of hires and the use of supporting software; hence, this report does not attempt to tabulate an average across all surveyed firms. Nevertheless, there is a common pattern Total Recruitment Costs per Employee by Channel Fortune 500 computer manufacturer 1,000 Figure 5 2,000 3,000 Internet job fair 5,000 campus recruiting 0 2,000 4,000 12,500* newspaper head hunter $ 12,000 *$50,000 annual salary reported by firms that collect this data: the marginal cost of each Internet recruit is significantly lower than with job fairs, newspapers or head hunters. In some cases, campus recruiting can be slightly cheaper, however, this channel does not apply for many candidates. Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 8
3.4 Cost Savings Why is Internet recruiting cheaper? Companies can achieve cost savings in three areas: 1) reduced direct costs of newspaper advertisements, job fairs and head hunter fees: virtually all surveyed companies continue to recruit through traditional channels and plan to do so for the immediate future. However, firms in industries with a high proportion of potential applicants already on-line are starting to reduce their use of other channels: one computer manufacturer reported that it reduced spending on newspaper ads by over $50,000 this year by moving those job listings to the Internet. Figure 6 Has Internet recruiting resulted in any cost savings? Yes 77% No 23% n=39 respondents 2) reduced mailing costs: HR managers report that applications received over the Internet result in lower mailing costs, as communications are sent by email. For major corporations that can easily receive over 20,000 applications a year, this is a noteworthy saving. 3) reduced workload for the HR Department: a properly implemented Internet recruitment strategy can reduce the workload for the HR team, as described in the following paragraph. 3.5 Impact on the Human Resource Department Workload 39% of surveyed managers report that Internet recruiting causes less work for the Human Resource Department. The Internet automates a number of tasks that were formally the responsibility of individuals: Does Internet recruiting cause more or less work for the Human Resource Department? Less 39% Same 28% there are less envelopes to open and resumes to manually sort Figure 7 there is no need to scan resumes instead of sending out letters, emails are automatically sent out acknowledging the receipt of resumes More 33% n=43 respondents Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 9
for some companies, the supporting technology performs a first screening of candidates It is noteworthy that 33% of firms surveyed are experiencing an increased workload with Internet recruiting. In the majority of these cases, the Internet is not yet integrated as a business tool and is simply used as an additional broadcasting channel. The additional workload is caused by the need to cut and paste job listings and manually maintain the Internet site. Of these companies that experience an increased workload, 84% did not add additional staff. Software packages, as described in paragraphs 4.21-4.22, are available to automate these processes and reduce staff workload. FASTER RECRUITING CYCLE 3.6 67% of recruitment managers surveyed report that the Internet has made recruiting faster. A number of the respondents who have not experienced a faster hiring process expect it to occur in the near future as their on-line systems Potential Times Savings With Internet Use simplified model of the recruitment cycle line manager identifies job opening candidate accepts offer & fills position 4 days saved HR Dept. advertises job opening HR Dept sends out job offer 5 days saved HR Dept. receives applications line manager interviews candidates 3 days saved HR Dept. processes & screens resumes line manager evaluate resumes Typical time savings: 12 days Figure 8 Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 10
develop. Companies that use the Internet technology effectively often cut approximately 12 days off the recruiting cycle. The actual time savings vary greatly from company to company: some are saving 1-2 days while others are combining the Internet with other innovations in the hiring process to cut up to 25 days off the recruiting cycle. While it is beyond the scope of this report to address these other re-engineered business processes, the Internet alone can speed up recruitment during three stages. 3.7 Faster Posting of Jobs The time savings that can be achieved in posting jobs is demonstrated with the example of a Mid-East farm machinery company. Once an opening is identified and the job description made available, it is immediately and automatically posted on the Internet. In contrast, the firm has to wait on average 3-4 days with newspaper advertisements until the next appropriate careers supplement is published. Figure 9 Does Internet recruiting help speed up the recruitment process? No 33% Yes 67% n=43 respondents 3.8 Faster Applicant Response Once a job is posted on the Internet, HR Departments starts receiving resumes the same day. In contrast, resumes sent by mail normally arrive 5 or more days later. 3.9 Faster Processing of Resumes When the HR Department receives a resume, the Internet can speed up the processing period by automating four tasks: 1) because job seekers have input all the required information electronically, there is no need to open envelopes, re-input the data or scan the resume 2) the company can send out confirmation to the applicant that they have received the resume by email immediately and automatically 3) software packages can intelligently search resumes for keyword terms and automatically perform a first screening of candidates 4) the HR Department can instantly send the file electronically to line managers, instead of using a slower internal mail system An aerospace company reported that its HR Department forwards resumes received on the Internet to line managers within 1 day. In contrast, it takes HR up to 4 days to process and forward a resume received by mail or fax. Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 11
HIGHER CALIBER RECRUITS 3.10 The majority of companies involved in active Internet recruiting believe that it helps them to attract better quality applicants, given that Internet users tend to be better educated and obviously more computer literate than non-users. An estimated 48% of Internet users have university degrees. More impressive, however, is the claim of Virtual Job Fair one of the on-line job boards profiled in Section 5 that 76% of the resumes they receive come from applicants who have Does Internet recruiting play any role in helping the company to attract highcaliber people? No 30% Figure 10 Yes 70% n=37 respondents completed university or college. Those companies with a head start in active Internet recruiting believe that they have the edge in attracting these candidates. Furthermore, since the Internet makes applying for job easier, more people apply including more high quality people. 3.11 This analysis applies to active job seekers, but one network communications company uses its web site to attract high-quality passive job seekers. The company recognizes that to remain an industry leader, it must expand and recruit the top people in the industry, many of whom are presently employed elsewhere. To attract and possibly win over these individuals, the company uses both on-line and off-line advertising to encourage potential job seekers to visit the web site and assess their options. Individuals can then decide whether to pursue discussions with the company. Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 12
4. WHAT ARE THE BEST PRACTICES IN INTERNET RECRUITING? 4.1 The companies that are most successfully achieving the results outlined in section 3 use the web site as an anchor for their recruiting strategies, rather than simply viewing the Internet as an additional channel for advertising job openings. The corporate web site is well-suited as a focal point for recruiting: from the company s perspective, jobs can be advertised at essentially no additional cost, detailed and up-to-date information on both the job and the corporation can be provided easily, the site can be accessed by a wide selection of people, and the web technology can be used to improve the efficiency of the recruiting cycle from the perspective of the job seeker, the web site can be used anonymously as a consolidated source of information on opportunities with the company Business Model for Effective Internet Recruitment Attract potential employees to the web site Meet their information needs Simplify the application process Streamline the processing of applications Figure 11 4.2 Companies at the forefront of Internet recruiting share a common business model for achieving results, as illustrated in Figure 11. ATTRACT POTENTIAL EMPLOYEES TO THE WEB SITE 4.3 As the first step in competing for the best human capital, corporations need to Business Model for Effective Internet Recruitment Attract potential employees to the web site Meet their information needs Simplify the application process Streamline the processing of applications Figure 11a newspaper advertisements other off-line advertising on-line career boards World Wide Web advertising banners search engines Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 13
provide detailed information to potential employees about job openings and about the company. Internet recruiters are using five main methods to attract potential employees to the site: newspaper advertisements other off-line advertising on-line career boards World Wide Web advertising banners search engines 4.4 Newspaper Advertisements While Internet recruiting reduces the need for newspaper ads, it does not outright replace them: fully 98% of the companies surveyed continue to use newspaper job ads (and will do so for the foreseeable future). Newspaper ads, however, are gradually moving away from providing detailed information about specific jobs to generally advertising opportunities with the company. These ads advise readers that detailed information is available at the web site. Fully 89% of surveyed companies include their URL in newspaper job ads. 4.5 Other Off-Line Advertising Companies operating in tight labor markets have become creative in how they reach potential applicants. Companies are moving beyond newspaper ads to job ads in airports, sports arenas, movie theaters and on radio since all they really need to provide is a reason to visit the web site and the URL (the web site address). The key is to determine where the ideal potential applicants can be found. One company in the highly competitive network communications sector used focus groups made up of ideal candidates to determine this. As a result, they started advertising at cinemas and even food and wine shows. 4.6 On-Line Career Boards By the beginning of 1998, there were over 100 on-line job banks, the largest of which attract upwards of 50,000 visitors each day. Seven of the major job boards are compared in detail in section 5. Job boards are good at attracting active job seekers particularly for less-recognized companies however, they should be used as a supplement to the corporate site. While some on-line career boards will allow you to create your own mini corporate home page on their site, this cannot provide as much information about the jobs and the company as you can provide on your own web site. 87% of the surveyed companies use job boards, 2/3rds of these companies thought they offered good value for money. The same number thought that the job boards were important to use, even though they list the available jobs on their own sites. Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 14
4.7 World Wide Web Advertising Banners Advertising banners on the World Wide Web have long been used to promote products they are also now being used to promote employment opportunities. Companies have realized that good quality potential employees, particularly technical people, can be found visiting popular general interest sites, such as the Dilbert Zone (www.dilbert.com), Hotwired (www.wired.com) and PC Week (www.zdnet.com/pcweek) and hence companies are starting to use advertising banners on these and other sites. Approximately 3% of all people who see these banners click-through. One software company reported that advertising banners on the web increased the visits to its employment page by 375%. 4.8 Search Engines Surprisingly few corporations index the employment page of their web site with the major search engines. Individual job seekers, however, use the engines to look for job opportunities. Hence, companies that take the time to register their employment page with appropriate metatags may be able to increase traffic to their job openings. MEET THEIR INFORMATION NEEDS Business Model for Effective Internet Recruitment Attract potential employees to the web site Meet their information needs Simplify the application process Streamline the processing of applications job opportunities and how to apply benefits package corporate culture and work environment Figure 11b 4.9 Once the corporation has been able to attract potential job seekers to the web site, they must present the company as a dynamic place to work. To generate interest in working for the firm, they must provide sufficient information on: job opportunities and how to apply benefits packages corporate culture and the work environment 4.10 Job Description and How to Apply Since there is no shortage of space on the web site, companies can provide as much detail about job openings and requirements as they want. All job Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 15
openings should be listed on the web site. Generally, companies provide a detailed description of job opportunities, location and how to apply. Companies are advised to indicate on the web site their preferred channel for receiving applications. 4.11 Benefits Corporations that need to compete for skilled labor need to be able to sell themselves to potential candidates. The Internet is ideally suited for providing a detailed description of the benefits package available when employed with the company helping to convince the candidate to consider this company over competitors. 4.12 Corporate Culture and Work Environment As companies increasingly compete for labor on the basis of the quality of the working environment, firms are including a description of the corporate culture and the working environment. The objective is to convince applicants that they are applying to a dynamic organization into which the candidate will be readily accepted. To put a human face on the corporate culture, some companies include profiles of recent recruits. Candidates also need to see detailed information about the company itself, however, this is typically provided elsewhere on the web site. SIMPLIFY THE APPLICATION PROCESS Business Model for Effective Internet Recruitment Attract potential employees to the web site Meet their information needs Simplify the application process Streamline the processing of applications job listings search engine on-line resume builder partnering program email notification Figure 11c 4.13 Once the information needs of potential employees have been met, leading Internet recruiters turn their efforts to simplifying the application process. The easier the process, the more applicants you will get and the more applicants you get, the more competent and qualified applicants you will be able to select from. With this in mind, leading Internet recruiters are making it as easy as possible, once a candidate has gathered the information on available jobs and what it is like to work at the company, to actually apply for a position. Four ways in which companies make it easier for candidates to apply are: Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 16
job listings search engine on-line resume builder partnering program email notification 4.14 Job Listings Search Engine Good Examples of Corporate Internet Recruitment Web Sites For good examples of how leading Internet recruiters are designing their employment pages in accordance with the principles of the business model described in this section, visit the following web sites: Most corporate recruitment pages have a search engine for accessing the job openings. To simplify the process for applicants, companies allow for searches by location, by area of expertise or by Department. 4.15 On-Line Resume Builder A number of companies provide a resume template on their site. This is easier for applicants than having to worry about the presentation of the resume, the wording of the cover letter and so on. Furthermore, it greatly reduces the workload at the receiving end as all information is automatically entered into the fields. Resume builders are often set up so that individuals can update their resume after it has been submitted. 4.16 Partnering Program Recognizing that it is always easier for applicants to navigate through the hiring process when they have an insider who can advise them, a small number of companies have set up a program to link applicants with someone working in the company. The insider, who works in a similar field to the applicant, advises the candidate throughout the process. The partnering program is advertised both externally and on the web site itself. 4.17 Email Notification Cisco Systems www.cisco.com/jobs Boeing Aerospace www.boeing.com/employment The Gap www.gap.com/employ.asp BF Goodrich www.bfgoodrich.com/employment Ernst & Young www.ey.com/careers/default.htm Microsoft www.microsoft.com/jobs/default.asp Inclusion in this list does not necessarily mean that these companies participated in the survey. Figure 12 A small number of companies are taking Internet recruiting a step further. Instead of a uni-directional strategy, whereby the company posts jobs and waits for applications to come visit, companies broadly outline the type of skill sets they will be looking for in the coming months and invite individuals to submit their resumes. When an appropriate position comes up, the company sends out an email to the individual, notifying him or her that a position is open which they may wish to apply for. This method is particularly useful in attracting passive job seekers currently employed elsewhere. Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 17
STREAMLINE THE PROCESSING OF APPLICATIONS* Business Model for Effective Internet Recruitment Attract potential employees to the web site Meet their information needs Simplify the application process Streamline the processing of applications software Figure 11d 4.18 Making it easier to apply through the Internet means that more applicants will submit resumes many of whom will not be qualified. There is a very real fear, therefore, that expanding your traditional recruiting circles to include the Internet will simply mean more work for the Human Resource Department. It is important that when a company starts recruiting over the Internet they use the available technologies to reduce, not increase, the workload. 4.19 There are six tasks in the recruitment process that can be automated or accelerated with supporting software: 1) posting jobs on the web site and on job boards as they are inputted in the human resource database 2) accepting resumes through email or a resume builder 3) sending out an acknowledgment of receipt of application by email 4) searching resumes by keywords or concepts and undertaking the initial screening of candidates 5) preparing resumes in a format that can be easily forwarded to line managers 6) inputting new resumes into the human resource database Without the appropriate software to facilitate these tasks, Internet recruiting may end up being a burden on the Human Resource Department. Internet Figure 13 Recruiting Software Solutions web site 4 1 candidate 2 recruiting software 6 3 Human Resource management system (PeopleSoft, ) job boards 5 line managers *All opinions contained in this document are based on information available at the time of the creation of the document and are subject to change. Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 18
5. HOW COST-EFFECTIVE ARE ON-LINE JOB BOARDS?* 5.1 This section evaluates six of the most popular on-line job boards: Career Mosaic Monster Board E-Span Online Career Center America s Job Bank Virtual Job Fair 5.2 The on-line job boards are most effectively used in conjunction with the corporate web site. The job board can generate interest and increase traffic to the web site, where full information on job openings and the company is available. It is essential to use job boards that: attract large number of visitors allow for hot links to your web site 5.3 Employers need to experiment with each of the job boards to determine which are best suited to their particular needs. Based upon the data presented in Figure 14, companies planning to use job boards are advised to start first with: E-Span Online Career Center America s Job Bank 5.4 The notable features of the six job boards are described below. 5.5 Career Mosaic (www.careermosaic.com) is not able to report the number of daily visitors to its site although it is likely comparable to Monster Board and Online Career Center (around 30-40,000). At $8,200 annually, Career Mosaic is more expensive than other competing job boards. Career Mosaic, however, does have the advantage that it can be used as the interface for the employment section on the companies own web site. For less than $10,000, Career Mosaic can prepare about five web pages that integrate with the corporate site. 5.6 Monster Board (www.monster.com) is somewhat of a monster when it comes to price it will cost firms around $16,000 annually to list jobs with a link back to the home page. While it has over 200,000 resumes on-hand, the 36,000 daily visitors to Monster Board makes it uncompetitive with other boards. *All opinions contained in this document are based on information available at the time of the creation of the document and are subject to change. Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 19
5.7 E-Span (www.espan.com) offers an excellent combination for companies looking to recruit: it has a large number of daily visitors (50,000), a relatively low number of posted jobs (12,000) and costs around $5,300 annually for unlimited postings with a link back to the home page. E-Span is a particularly good option for those seeking technical staff a reported 80% of all their job seekers are experienced technical people. 5.8 Online Career Center (www.occ.com) offers good value for money at $4,900 annually for unlimited postings with a link back to the home page. A solid 30,000 daily visitors makes the OCC a cost effective option. 5.9 America s Job Bank (www.ajb.dni.us) is a free federal government service. While the AJB does not maintain data on the number of resumes, jobs or site visitors, as a popular employment site that allows hyper links to corporate sites, it is worth using. 5.10 Virtual Job Fair (www.vjf.com) is surprisingly expensive (over $22,000 annually) considering that it only attracts 5,000 visitors daily. VJF does offer one service that is uncommon among other job boards it can be set up to automatically reach out to your internal human resource databases to update the job listings on the VJF site. Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 20
Selected On-line Job Boards comparison on activity and costs a Career Mosaic Monster Board E-Span Online Career Center America s Job Bank Virtual Job Fair ACTIVITY total visitors/day n/a 36,000 50,000 30,000 n/a 5,000 posted resumes 70,000 207,000 43,000 63,000 n/a 60,000 posted jobs 50,000 35,000 12,000 56,000 n/a 20,000 COSTS list single job (60 days) $150 b $150 $150 $150 $0 $315 c corporate subscription d $8,235 $13,000 e $4,875 $4,900 f $0 $22,080 g link to corporate home page h incl. $3,000 $495 incl. $0 incl. resume database search i incl. $4,900 incl. incl. $0 $4,000 mini home page j $1,500 $2,000 n/a incl. n/a incl. advertising banner k n/a $8,000 l $2,000 $5,400 m n/a $1,000 virtual job fair n $3,500 $5,000 n/a n/a n/a $1,000 a All data as of December 1997 as reported by the companies themselves. b 30 days c $300 per month plus $15 per listing d The corporate subscription is the annual fee for companies to post an unlimited number of job listings. e The closest product that Monster Board has to a corporate subscription is a $6500 package of 100 listings within 6 months (equal to $13,000 annually). A 6-month package of 200 jobs sells for $10,000. f Maximum 100 job listings per month g $2,300/month if not paid in advance h Link to corporate home page refers to the annual cost of having a hyper link from your job openings on the career board back to your own corporate web site. incl means that this fee is included in the annual corporate subscription. i Resume database search refers to the annual cost for employers to search through the resumes available at the job board. incl means that this fee is included in the annual corporate subscription. j Mini home page refers to the annual cost for employers to have a one-page corporate reference page on the job board site. incl means that this fee is included in the annual corporate subscription. k These refer to monthly rates unless otherwise indicated for second-tier banners i.e. banners that typically appear on the job search page but do not appear on the home page. l $2000/week m $5400 per month or 100,000 impressions (which ever comes first) n A virtual job fair is essentially the same as an advertising banner. These job fairs run for 10 days on Career Figure 14 Mosaic and 7 days on Monster Board. Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 21
6. CONCLUSIONS 6.1 This report shows how leading companies use the Internet to: reduce the costs of recruiting speed up the process of recruiting recruit higher caliber personnel 6.2 The magnitude of these results will increase dramatically over the next 24 months as: more job seekers move on-line companies become more experienced with Internet recruiting more commercial software packages become available in support of the best practices of Internet recruiters 6.3 Companies that have not yet begun to recruit over the Internet can catch up quickly, given that the most experienced recruiters have used the medium for little over two years. ilogos provides an Internet Recruiting Checklist, designed to help companies identify specific actions to initiate or improve their on-line recruitment, annex to this report. 6.4 ilogos has focused on specific results and best practices that are currently taking place. In closing, our research identifies six emerging trends in Internet recruiting: 1) The proportion of applications that come in through the Internet will increase. Given the efficiencies of Internet recruiting, companies will encourage applicants to apply on-line. Leading industries will aim for upwards of 90% of applications through the Internet and other industries will follow. Furthermore, companies will request applicants to submit through a resume builder, rather than simply emailing the resume. 2) Companies will increase the training of recruiters in how to use the Internet effectively. In order to achieve the best results possible, human resource professionals must be made fully aware of what can be achieved with the Internet and how it can be used to reduce their own workload. 3) Internet recruiting will diminish the importance of recruiting through other channels. The Internet will soon mature to the point where companies can reduce advertising job openings in newspapers and head hunters are only used for difficult-to-fill positions. While it is still a matter of years before Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 22
newspaper job ads are significantly impacted by the Internet, both newspapers and head hunter agencies have recognized the trend. In order to preserve their market position, both newspapers and head hunters have moved on-line themselves to capture a share of the emerging market. 4) Recruiting high caliber employees will become a two-way process between employers and candidates. Given the ease of information flows possible with the Internet, companies will use it to post jobs, but they will also use the Internet to contact interested individuals when appropriate openings come up. As more companies push out their job openings, high caliber individuals will be regularly offered new positions. Companies will increasingly have to treat hiring and maintaining staff with the care they give to selling products. At the same time, experienced knowledge workers will be able to let other companies know that they are open to offers, in essence, recruiting the company that they wish to work for. 5) The employment section of the web site will become more interactive and participatory and more of the hiring process will become automated. Companies are trying to determine how they can present the employment pages in a more dynamic and interactive manner. Companies are also trying to make their sites more participatory, having job seekers input the data themselves, in order to automate as much of the process as possible. The screening out of candidates will also become more automated. Beyond just searching for keywords, companies will increasingly ask individuals to take tests on-line to better assess their ability. Currently, the management consulting companies have an interactive game on-line that allow individuals to assess their aptitude for consultancy. 6) Internet recruiting will grow geographically beyond its concentration in North America and linguistically to languages other than English. As the area with the highest number of Internet users, it is not surprising that North America is leading the way in Internet recruiting. However, as the Internet penetration rate increases in other parts of the world, it can safely be predicted that online recruiting will follow. Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 23
ANNEX - INTERNET RECRUITING CHECKLIST The following checklist is designed as a benchmarking exercise, helping companies identify what they can do to implement or improve an Internet recruitment strategy. The checklist is divided into three sections: A. Best Practices in Web Site Design: ensure that the site is optimally designed for recruitment purposes B. Participation Rates: determine how popular Internet recruiting is with candidates C. Results: understand the effectiveness of Internet recruiting, quantifying the cost and speed of recruiting and the contribution of job boards Companies that have experience with on-line recruiting are in a position to complete all three sections. Companies that are planning to implement an Internet recruiting strategy will only use Section A at this point, but can turn to Sections B and C when ready to evaluate the initiative. HR managers working collaboratively with the web site team will achieve positive and effective results for the entire organization. A. BEST PRACTICES IN WEB SITE DESIGN The best practices for successful Internet recruiting are listed below. Top Internet recruiters answer YES to the following questions. For each answer that you tick as a NO, determine whether it would be appropriate to initiate the action, given the unique circumstances of your organization. These best practices follow the structure of Section 4, with the referring paragraphs listed. 1. Attract Potential Employees to the Web Site NEWSPAPER ADVERTISING 1.1 Do you continue to use newspaper and trade journal advertisements to list job openings? Yes No Reference 4.4 1.2 Is your URL included in all print ads? 4.4 1.3 Has the emphasis of print ads shifted from listing specific jobs to indicating that detailed job opportunities can be found on the web site? 4.4 Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 24
OTHER OFF-LINE ADVERTISING Yes No Reference 1.4 Do you advertise employment opportunities on any of the following: a radio 4.5 b television 4.5 c airport ads 4.5 d billboards 4.5 e sports arenas 4.5 f movie theaters 4.5 ON-LINE CAREER BOARDS 1.5 Have you determined 3-4 preferred job boards? 4.6 1.6 Do you list all key jobs on both the web site and the job boards? 4.6 WWW ADVERTISING BANNERS 1.7 Does your advertising budget allow you to purchase banners on these sites? 4.7 1.8 Have you determined a short list of web sites where potential employees can be found? 4.7 1.9 Have you already used, or do you plan to use, banners on these sites? SEARCH ENGINES 1.10 Is the employment page of your web site indexed with the major search engines? 4.8 2. Meet Their Information Needs APPROPRIATE INFORMATION Yes No Reference 2.1 Is the following information included on the corporate web site? a all job openings with the company 4.10 b sufficient description of the positions 4.10 c job requirements 4.10 d location of jobs 4.10 Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 25
e general corporate information 4.12 f benefits package 4.11 g description of the corporate culture 4.12 h description of the work environment 4.12 i profile of recent recruits 4.10 j preferred channel for receiving applications 4.10 k how to apply electronically 4.10 l how to apply by fax or by mail 4.10 3. Simplify the Application Process DESIRED FEATURES Yes No Reference 3.1 Is there a job listings search engine (to search by location, area of expertise or department)? 4.14 3.2 Is there an on-line resume builder, including the option to update the resume at a later date? 4.15 3.3 Is there a partnering program? 4.16 3.4 Is there an email notification service for new job openings? 4.17 4. Streamline the Processing of Applications SOFTWARE AUTOMATION Yes No Reference 4.1 Does the Human Resource Department use software programs to automate the following: a post jobs directly as they are inputted into the human resource database 4.19 b accept resumes by email or preferably through a resume builder 4.19 c input new resumes into the recruitment database 4.19 d send out an acknowledgment of receipt of application by email 4.19 e search resumes by keywords or concepts 4.19 f undertake the initial screening of resumes 4.19 g prepare resumes in a format that can be easily forwarded to line managers 4.19 Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 26
B. PARTICIPATION RATES Human Resource Departments need to be fully aware of how popular the corporate web site is for recruiting. This section helps companies get a better sense of how important potential employees are as a user group of the web site. Companies that are considering embarking upon Internet recruiting, but are unsure whether it will be a worthwhile investment, could put up a single page broadly describing career opportunities with the firm. The firm can measure the traffic to the page, in order to get a sense of how much a full section on the web site for Internet recruiting would be used. 5. Popularity of the Employment Page PAGE VISITS Reference 5.1 What is the total number of visitors to the web site each month? 2.3 5.2 How many visitors are there to the employment page each month? 2.3 5.3 Not including the home page, is the employment page the 1st, 2nd, 3rd, 4th or 5th+ most visited page on the site? 2.3 6. Source of Applications For this section, collect the data for a fixed time period ideally on a quarterly or half-yearly basis. Reference TOTAL APPLICATIONS RECEIVED 6.1 What is the total number of resumes that were received during the period? APPLICATIONS RECEIVED FROM THE INTERNET 6.2 How many applications came from the Internet (both the web site and job boards)? 2.2 6.3 How many applications came from the Internet as a percentage of total applications received? % 2.2 Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 27
APPLICATIONS RECEIVED FROM HELP- WANTED PRINT ADS 6.4 How many applications came from help wanted ads in newspapers and trade journals? 6.5 How many applications came from help wanted ads as a percentage of the total? % APPLICATIONS RECEIVED AT JOB FAIRS 6.6 How many applications were received at job fairs? 6.7 How many applications were received at job fairs as a percentage of the total? % APPLICATIONS RECEIVED THROUGH EMPLOYEE REFERALS 6.8 How many applications were received through employee referrals? 6.9 How many applications were received through employee referrals as a percentage of the total? % APPLICATIONS RECEIVED THROUGH CAMPUS RECRUITING 6.10 How many applications were received through campus recruiting? 6.11 How many applications were received through campus recruiting as a percentage of the total? % C. RESULTS Section C is designed to assist managers in determining the effectiveness of Internet recruiting, in terms of its cost and speed, and the importance of specific job boards. Given the rapid increase in Internet recruiting, these numbers will shift and should be updated regularly. Portions of this report may be reproduced with proper attribution to recruitsoft.com/ilogos Research. 28